Question 1

Who is an Authorised Person?

Accepted Answer

Authorised persons (formerly known as sub-brokers) provide access to trading platforms and assistance for investments between stockbrokers and clients. The APs are registered with the NSE and BSE and they work as agents of stockbroking houses to create an advanced business network for them.

An AP can be an individual, partnership firm, LLP, or a corporate entity.

Question 2

What is the role of an Authorised Person?

Accepted Answer

The primary responsibility of an Authorised Person is to register clients and assist them with their trading requirements. They provide support in buying, selling securities and have the authority to trade on behalf of the clients, with prior permission.

Question 3

Who can be appointed as an Authorised Person?

Accepted Answer

Individual: A resident of India, above 18 years of age.
Partnership firm: A firm that is registered under Indian Partnership Act, 1932.
LLP: A firm that is registered under the Indian Limited Liability Partnership Act, 2008.
Corporate: A firm that is registered under the Indian Companies Act, 1956.

Question 4

Can Hindu Undivided Family (HUF) be appointed as an Authorised Person?

Accepted Answer

No, HUF can't get registered as an AP. In order to become an AP, one must be either an individual, a partnership firm, a LLP or a Corporate entity.

Question 5

What are the documents required to register as an Authorised Person (AP)?

Accepted Answer

To register as an individual Authorised Person (AP), you need to have the following documents: PAN Card Residential Address proof of the individual Registered Office Address proof of the Applicant (if business address given) Educational Qualification (minimum 10th (SSC) marksheet/passing certificate) Bank Account Details- where the monthly payouts will be released. Note: All documents should be in the name of the applicant Note: Name change affidavit needed in case of Name mismatch. To register as a Corporate Authorised Person (AP), you need to have the following documents: Corporate Documents Company Pan Company Address Proof Incorporation Certificate Copy of MOA & AOA BSE/NSE Annexures certified by C.A Authorized signature letter (Signed by all Directors) Board Resolution Authorized signature letter Company Bank Proof List of Directors certified by C.A Directors Documents Pan Card of all Directors Address proof of all Directors Education proof All Directors Marriage Certificate (If Applicable) Memorandum of Association (MOA), including the certificate of incorporation of the corporate applicant: The main object clause should include a clause permitting the corporate firm applicant to deal in shares and securities business If the above mentioned clause does not exist in the main objects clause of the MOA, a certified true copy of the board resolution approving the inclusion of the said clause in the main objects clause of the MOA must be submitted The following Annexures should be downloaded and get attested by CA and uploaded in the given link. NSE Annexure 3 - Details of directors of the AP. NSE Annexure 4 - Details of shareholding. BSE Annexure 2 (b) (v) To register as a Partnership/LLP Authorised Person (AP), you need to have the following documents: Partnership/LLP Documents: Partnership/LLP Pan Partnership/LLP Address Proof Registered ROF Certificate Partnership/LLP deed Authorized signature letter Partnership/LLP Bank Proof Partner Documents: Pan Card of All Partners Address proof of All Partners Education proof All Partners Marriage Certificate (If Applicable) For Partnership deed, please note the following pointers Registered Partnership Deed / LLP Agreement should consist of clause/nature of business permitting the applicant firm to deal in shares and securities In case of main clause is added of dealing in shares and securities following documents should also be needed. 1) Supplementary deep 2) MCA receipt copy of acknowledgement The following Annexures should be downloaded and attested by CA and uploaded in the given link. NSE Annexure 3 LLP BSE Annexure 2(b)(v) Below are the valid documents for residential and business address proof. You need to upload one document for each. Latest landline telephone bill (not older than 6 months) Latest electricity bill (not older than 6 months) Bank statement/passbook (single/joint/second holder). The first page (containing the address) and the page with the latest transaction list (not older than 6 months) should be uploaded. Notarised / registered rent agreement (In case of agreements in regional languages the commencement date, name and address of the parties and the validity of the agreement should be translated in English/Hindi). Voter's id /Driving License /Valid Passport /Aadhaar Card valid ration card. In case of Family Card, the documents supporting the extended validity should also be uploaded. Trade license agreement / shop establishment certificate (This proof is valid only for business address) Purchase deed along with index form

Question 6

If a company or partnership firm is already registered as an Authorised Person (AP), can one of its directors or partners also register individually as another Authorised Person?

Accepted Answer

No, a Director or Partner of an existing AP registered firm cannot register as a new Authorised Person in any capacity.

Question 7

What is the eligiblility criteria to become an Authorised Person?

Accepted Answer

The eligibility criteria for an individual to become an AP is listed below.  Should be a citizen of India Should be 18 years of age or above Should have passed 10th standard or equivalent examination recognised by Central or State government Should not have been convicted for any offence involving fraud or dishonesty An Authorised Person who was suspended for more than six consecutive months must wait three years before they can be reappointed. The eligibility criteria for a Partnership firm to become an AP is listed below.  All the partners or directors must comply with the eligibility criteria mentioned above for 'Individual' category The partnership deed or the Memorandum of Association should have a clause permitting to deal in Shares & Securities business

Question 8

What is the infrastructure required to become an AP?

Accepted Answer

The Authorised Person must have an adequate office space, equipment, manpower and other infrastructural facilities, which the Exchange can prescribe from time to time, in order to effectively service their clients on behalf of the stockbroker.

Question 9

Are NISM certification and third-party reference letters required to become an Authorised Person?

Accepted Answer

No, they are not mandatory requirements.

Question 10

Do you need to provide a Registration of Firm (ROF) certificate while registering as an AP in the Partnership firm category?

Accepted Answer

As a part of the registration process, to become an AP, a Partnership firm needs to submit the Registration of Firm (ROF) certificate along with the partnership deed.

Question 11

Is it necessary for an AP to enter into a tripartite agreement involving an AP, stockbroker, and client?

Accepted Answer

No, the agreement is required to be signed only between the stockbroker and the Authorised Person in the format which has been prescribed by the Exchange vide circular no. 705 (download ref. no. 13601) dated December 3, 2009.

Question 12

Can a stockbroker enter into a tripartite agreement in addition to the agreement between stockbroker and authorised person?

Accepted Answer

Yes, however, whilst applying for appointment of Authorised Person, the uploaded agreement should be strictly as per the format prescribed by the Exchange.

Question 13

Can an existing sub-broker also register as an Authorised Person (AP)?

Accepted Answer

No, if you are an existing sub-broker with SEBI then you would first need to get your sub-broker registration cancelled. Once that is done, you can then apply to become an Authorised Person (AP) with the exchange.

Question 14

Can an Authorised Person be affiliated with more than one stockbroker?

Accepted Answer

No, an Authorised person can be affiliated with only one stockbroker at any given point of time.

Question 15

Can you transfer your existing AP registration from one stockbroker to another?

Accepted Answer

No, you would first need to cancel your AP registration done through the current stockbroker. Once that is done, you would need to apply for a new AP registration via the second stockbroker that you desire to get associated with.

Question 16

Can an Authorised Person open multiple offices?

Accepted Answer

Yes, an Authorised Person is allowed to have multiple offices.

Question 17

Is it possible for one of the partners or directors to eSign on behalf of a Partnership / LLP / Corporate firm?

Accepted Answer

Yes, if the partner’s or director's name is mentioned as an authorised signatory passed by the company's board of members or mentioned in their Partnership deed / LLP agreement, then they can eSign on behalf of the firm. A letter should be submitted on firms letterhead and mentioning the purpose of AP registration.

Question 18

How can I become an authorised partner with Mirae Asset if I am already registered with another stockbroker?

Accepted Answer

If you are already registered as an AP with another stockbroker, then you have three ways to join Mirae Asset Partners:  Cancel your AP registration with your current stockbroker; or Apply under a new name that's not registered with the exchange as an AP; or If you can't cancel your registration or apply under a new name, you can still join our Affiliate Program.

Question 19

What is the affiliate program offered by Mirae Asset?

Accepted Answer

Mirae Asset runs an affiliate program where you can introduce your community or clients to m.Stock and earn lucrative commissions on each new customer account opened.

Question 20

What are the various charges that one needs to pay to register and operate as an AP?

Accepted Answer

Security deposit: ₹50,000 (Refundable)  Document handling charges: ₹1,500 (eFranking & eSign charges)  One-time Exchange Registration Charges:  AP registration charges Exchange	Segment	Fee (₹)	GST rate	GST amount	Total charges (₹) NSE	Capital Market	5,000	18%	900	5,900 NSE	F&O	5,000	18%	900	5,900 BSE	Capital Market	4,000	18%	720	4,720 Total Registration charges	All Segments	14,000	18%	2,520	16,520 AP Annual Maintenance Charges effective from April 2024:  NSE-AMC	All Segments	5,000	18%	900	5,900 BSE-AMC	All Segments	4,000	18%	720	4,720 Total AMC	NSE&BSE	9,000	18%	1,620	10,620

Details	Industry	Mirae Asset Partners
MTF active clients	100	100
Total MTF Book, (assuming ₹3 lakh per client)	₹3 crore	₹3 crore
Average interest rate	18%	18%
Base rate (retained by the broker)	12%	9.99%
Interest sharing above base rate	50%	80%
Annual MTF interest payout	₹9 lakh (50%)	₹19.22 lakh (80%)

Assumptions	Industry	Mirae Asset Partners
Pledge shares active clients	100	100
Total Pledge Shares Book (assuming ₹2 lakh per client)	₹2 crore	₹2 crore
Average interest rate	18%	18%
Base rate (retained by the broker)	12%	9.99%
Interest sharing above base rate	50%	80%
Annual Pledge Shares interest payout	₹6 lakh (50%)	₹12.80 lakh (80%)

	Industry	Mirae Asset Partners
No of scrips sold per day	25	25
Average DP transaction charges	₹18	₹18
Customised DP transaction charges	NA	₹25
Annual DP transaction charges	₹1,08,000	₹1,68,000
Payout rate	5% (On Base)	100% (Above Base)
Annual Payout above base rate	₹5,400	₹42,000

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Frequently Asked Questions

1. Who is an Authorised Person?

2. What is the role of an Authorised Person?

3. Who can be appointed as an Authorised Person?

4. Can Hindu Undivided Family (HUF) be appointed as an Authorised Person?

5. What are the documents required to register as an Authorised Person (AP)?